Numeracy, Financial Literacy and Participation in Asset Markets

40 Pages Posted: 8 Feb 2011 Last revised: 24 Apr 2011

See all articles by Johan Almenberg

Johan Almenberg

affiliation not provided to SSRN

Olof Widmark

affiliation not provided to SSRN

Date Written: April 22, 2011

Abstract

We measure levels of numeracy and financial literacy in the Swedish population and link these to participation in two key asset markets: stocks and housing. Many adults have low levels of both numeracy and financial literacy, with large differences between demographic groups. Numeracy is positively correlated with participation in both markets, also when controlling for other individual characteristics, whereas financial literacy is correlated with stock ownership but not with homeownership. Our results corroborate the view that non-participation is a common response to deficiencies in numeracy and financial literacy, and also point to important differences between the stock and housing markets.

Keywords: Numeracy, financial literacy, household finance, market participation

JEL Classification: A2, D14, I22

Suggested Citation

Almenberg, Johan and Widmark, Olof, Numeracy, Financial Literacy and Participation in Asset Markets (April 22, 2011). Available at SSRN: https://ssrn.com/abstract=1756674 or http://dx.doi.org/10.2139/ssrn.1756674

Johan Almenberg (Contact Author)

affiliation not provided to SSRN

Olof Widmark

affiliation not provided to SSRN ( email )

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